Reasons why you should use rent receipts as a landlord
Are you searching for ways to grow your rental business while protecting your best interests? If so, saving rent receipts can help.
Rent receipts are important because they create a paper trail that you can rely on should you need to meet your tenant in small claims court for any reason.
Because we live in a digital age, many landlords are against saving rent receipts because of the work involved but the reality is that it’s one of the best things that a landlord can do for their business, especially for these reasons.
- Rent receipts can prevent disputes. A rental receipt can nip in the bud before a conflict arises if a tenant or landlord agrees about whether or not rent was paid. If a tenant always requests a receipt upon paying rent but cannot find one for that month(s) in question, they may think twice before accusing their landlord of double-charging them.
- Rent receipts can resolve disputes. If a landlord insists that their tenant hasn’t paid rent yet, but the tenant can provide a rental receipt proving that they have, it can prevent a disagreement from evolving into something more. Also, if a tenant wants to dispute receiving a late fee, a rental receipt will show them when they paid their rent. If it was paid on the 10th and their rental agreement states that a late fee will be charged if rent isn’t received by the 5th, the tenant will know they’re responsible for paying the fee.
- Rent receipts give landlords and tenants peace of mind. A physical document proving when rent was paid. Eliminates any gray area regarding whether or not a landlord received payment.
How to Fill Out a Rent Receipt
Completing a rent receipt is a simple task and should only take about a minute of your time. If you create a rent receipt template, it’ll be even easier!
Here’s the process, step by step:
- Enter the payment date and receipt number at the top of your form:
- Write down the property address and the name of your tenant. If you’re using a rent receipt template, you can automate the address and have the tenant write their name instead.
- Include the amount paid and their method of payment.
- Identify the rental period the receipt is for. If there’s a remaining balance due (for the month in question or carried over from previous months), include that here as well.
- The tenant then prints and signs their name, proving they received a rental receipt.
- Next, the landlord provides their contact information (which can be automated using a rent receipt template) and signature.
- Finally, the landlord can make a copy of the rent receipt for their records. You can receive an email with an online rent receipt that the document is signed.
What if a Tenant Pays Rent Online?
If you’re a landlord or property manager who isn’t accepting online payments yet, you should be!
Worrying about whether or not a tenant will pay on time is usually the main concern of landlords and property managers. These days having to write or mail a check physically is often considered an inconvenience.
Think of it this way: the average age of a renter is someone who is under 40 and has grown up with the internet, email, and all things digital. Many renters only have checkbooks because their landlords only accept checks. While this may sound trivial, this extra step could lead to them paying late and getting charged a fee or forgetting to mail the check altogether.
And when someone falls behind, it can be challenging to catch up.
Here are a few more reasons why you should consider making online rent payments an option:
Tenants prefer it
83% of people want to pay their bills online, and 57% already do. This is up from 24% in 2020 and 17% in 2019.
Tenants can automate payments
When a tenant sets up their online profile, they usually have the option to automate their payments. By opting to do so, they can pay rent automatically every month—and these payments will be made on time, so long as they have the money in their account. This takes the human error of procrastinating or forgetting to pay rent out of the equation.
Online payments are safer
Using an online system to pay rent is one of the most secure options available to tenants. Paper checks contain a lot of sensitive information, including your name, address, and bank account information. If they get intercepted, you are vulnerable to fraud.
Automated rent receipts
Lastly, online payments can automatically sync with your accounting system and provide you and your tenant with proof of payment. You won’t have to worry about producing a physical receipt every month for your and your tenant’s records.
Are you tired of managing your Portland area rental property yourself? We can help!
Our property management team has decades of combined experience serving landlords in the Portland area.
To learn more about the services we can offer you, contact us today by calling (503) 447-7788 or click here to connect with us online.